American food AID and its impact on the Egyptian Economy

Economy

Production

policy

The topic of food aid has evolved greatly over time. This resulted in continuous re-assessment of food aid programs on the part of recipient - and donor. The present paper aims at evaluating the motives that lie behind the food and programs of the donor country and its effects on the economy of the recipient country. Egypt, a country which has become the major recipient of American food aid since the re-establishment of the American/Egyptian relations in 1974, stands as a good example for applied analysis in this concern. The paper discusses such questions: Does food aid help the Egyptian farmers to increase their incomes and food production capacity? Does it further U.S.A. trade and policy aims? Does it lead Egypt to accelerate its develop- ment plans? Or does it contribute to further increase of Egyptian dependency on the donor country? And how does food aid support the Improvement of Income distribution in Egypt? Therefore, this paper deals with the past and present trends of American food aid, the analysis of the F.L. 480 program to Egypt, and the effects of American food aid on the Egyptian economy.